Pinterest worth $3.8 billion after massive funding round
The pin-board company has collected $225 million in new financing, and has grown its value by $1.3 billion in the past eight months despite having virtually no revenue.
Stick this on your board: Pinterest has closed a $225 million round of funding that now values the company at $3.8 billion, the startup confirmed to CNET. New investor Fidelity led the round with participation from existing investors Andreessen Horowitz, Bessemer Venture Partners, FirstMark Capital, and Valiant Capital Partners, Pinterest said.
The news, first reported by AllThingsD, comes just eight months after the social-networking site . At the time, it was valued at $2.5 billion.
"We hope to be a service that everyone uses to inspire their future, whether that's dinner tomorrow night, a vacation next summer, or a dream house someday," co-founder and CEO Ben Silbermann said in a statement shared with CNET. "This new investment enables us to pursue that goal even more aggressively."
The astronomical raise comes as Pinterest attempts to profit from its popular Web and mobile apps that allow people to "pin" recipes, clothes, inspirational quotes, and so forth to digital pin-boards. The service only beganlast month and said it wasn't charging its first clients, meaning that the 3-year-old company is still not making money.
Pinterest said it will use the newly acquired funds to turn the ad test into a "global program," as well as finance expansion into 10 more countries before the end of the year. The company said it also plans to make acquisitions, spend on improving its infrastructure, and invest in mobile products, which now represent more than three-fourths of all Pinterest usage.
Pinterest has raised $564 million in funding to date.